Thanks. For the future, please attach the logs instead of pasting them
into the comments.

You are using the -openchrome driver (with the "via" 3D driver) so it
is certainly not a radeon issue here.

I noticed this in the LTSP X log, but I do not know if it causes any
harm:

[config/dbus] couldn't take over org.x.config:
org.freedesktop.DBus.Error.AccessDenied (Connection ":1.7" is not
allowed to own the service "org.x.config.display7" due to security
policies in the configuration file)

The xsession-errors are difficult to read, but I wonder if this:

Trying again with indirect rendering:
Checking for texture_from_pixmap: gnome-screensaver: Fatal IO error 11 
(Resource temporarily unavailable) on X server 192.168.0.110:7.0.

means glxinfo is bombing out when tried with indirect rendering? Please
try "glxinfo -i" on the  live CD.

** Package changed: xserver-xorg-video-ati (Ubuntu) => xorg (Ubuntu)

-- 
Since upgrade from jaunty to karmic, one of two thin clients' login broken.
https://bugs.launchpad.net/bugs/482875
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xorg in ubuntu.

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